As consumer groups call for “urgent action” on trail commissions, one Sydney mortgage professional has started donating his trail to a national charity in an effort to combat homelessness.
Sherwood Finance, which has offices in Sydney and Adelaide, has announced an initiative that will directly support Australians in need.
The mortgage broking company, which celebrated its 2nd birthday in June, started donating 20 per cent of its trailing commissions from 1 July to Mission Australia*.
The funds will go towards supporting the charity’s work assisting disadvantaged Australians find safe and affordable housing, supporting disadvantaged children and families, assisting people with mental illness and disability, and much more.
Sherwood Finance founder and broker Daniel Donnelly told The Adviser that he believes the finance sector “should be publicly more generous to the communities we live in” and predict that ongoing contributions will assist in building a stronger and more aware society.
“I think we as brokers can be doing much more to raise awareness and help those without money. As a broker, I deal with people who have money and sometimes people who don’t have so much money. I could see a way of being of service to wider community,” Mr Donnelly said.
“Mission Australia will do a better job at helping disadvantaged Australians than I could personally. I approached them in September last year and they were very supportive,” he said.
The trail commission donation is also a win for clients, who are able to support a worthy cause by dealing with a broker.
“We need to have a conversation with the client about how we are remunerated. During that conversation, I can tell them that they will be donating to Mission Australia without any extra effort or expense,” Mr Donnelly said.
Donations are now beginning to roll in. Mr Donnelly said he will spend the next six months raising awareness by personally working with Mission Australia and filming a short video with the organisation.
His efforts come after consumer advocate, CHOICE, this week slammed brokers and called for “urgent action on trail commissions”.
*update 01/10/2019: This scheme has concluded and is no longer in place.
[Related: It's time for the broker bashing to stop]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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